Why Republicans opposing proposal to use unspent COVID fund on pension, jabs?

How is the US government planning to use it?

The largest chunk of unspent funds, $47 billion, is earmarked for financially troubled union pension funds that have asked the federal Pension Benefit Guaranty Corporation for help. Reclaiming this money could mean that around one million union workers, including fishermen in Massachusetts and carpenters in Ohio, would not receive their full retirement benefits. Additionally, clawing back funds could also affect veterans’ healthcare, as the Department of Veterans Affairs has yet to spend $4.6 billion of the money it received for COVID-19 related care. The health system is currently treating 4,500 patients for the disease.

Other remaining pots of money include $6.8 billion to fight the virus itself by developing improved vaccines and tests and researching topics like long COVID, as well as $3.2 billion for small business aid and $2.5 billion for bus and subway systems that have struggled with declining fare revenue. Much of this money has been designated for specific recipients.

However, some funding that remains on the books will never be spent, and thus offers no potential budget savings. For example, the Transportation Department handed out less than $700 million from a $3 billion fund that aimed to preserve airplane-manufacturing jobs after several major firms declined to participate. Businesses also claimed less than Congress anticipated in tax breaks to keep employees on the payroll and provide COVID-related sick leave.

Furthermore, some Republican-led states opted out of expanded unemployment and food-stamp benefits, saying they discouraged work. That led the federal government to spend less than it would have otherwise. Republican governors of Nebraska and Arkansas last year rejected a second round of aid for people behind on their rent. Those dollars were then given to other states.

While Republicans argue that clawing back unspent COVID-19 relief funds is an obvious starting place for any debt ceiling discussion, the reality is that the remaining funds are a small target that could have significant consequences for vulnerable populations. The Treasury Department has not seen many state and local governments return funds, despite Republican Senator Rick Scott’s call for them to do so voluntarily to help pay down federal debt.